Gilt Calendar Preview (2/2)

• Longs (12 auctions): We expect three auctions each of the 1.25% Oct-41 and the 0.625% Oct-50 gilts. We expect 2-3 auctions of the 1.625% Oct-54 gilt, 1-2 auctions of the 1.75% Jul-57 gilt, one auction of the 1.625% Oct-71 gilt and two auctions of the new 15-year gilt if that fits into the long bucket.
• 15-year: We pencil in 8 September for the launch of the new 15-year gilt. We expect it to be reopened twice more during the period via auction.
• Other syndications: We still expect the 0.50% Oct-61 gilt to be sold via syndication, most likely on 22 September. We also think that if the DMO does decide to launch a new 2031 linker that the DMO would chose to do that via a syndication, probably in November.
• Linkers (6 auctions): We have very little conviction on the linkers that will be issued but expect to see at least two of the auctions to cover the 2028, 2029 or potentially a new 2031.
• Other considerations: The DMO has already raised GBP241.1bln through gilt and linker sales in the April-July period. This leaves a run rate of about GBP36bln/month until the end of November. The DMO has already begun to reduce some of its gilt auction sizes over the past week or two (moving away from the top end of its previously stated ranges) and this may be something to watch going forward. (2/2)

For the full document see: https://emedia.marketnews.com/GiltCalendarPreview30072020.pdf